Dayuan Pump Industry (603757): Quarterly Revenue Growth Turns to Positive Growth of Industrial Canned Pumps

Dayuan Pump Industry (603757): Quarterly Revenue Growth Turns to Positive Growth of Industrial Canned Pumps

Dayuan Pump Industry released the third quarter report of 19, the company achieved operating income in the third quarter3.

3.6 billion, an annual increase of 8.

9%, realized net profit attributable to shareholders of listed companies of 61.88 million yuan, an annual increase of 15.

9%, deducting non-returned net profit of 53.39 million yuan.

In the third quarter, revenue and net profit previously increased to positive. This is also the first quarterly growth rate from negative to positive in four quarters.

Company operating income from January to September 8.

US $ 4.3 billion, a decrease of 1% per year, and net profit attributable to shareholders of listed companies1.

3.6 billion, down 3 every year.

3%, deducting non-attribution to net profit 1.

23 trillion, down 8 every year.

3%.

The company leads the industry and has slowly come out of the trough.

Single quarter revenue, profit growth turned positive, and net profit hit a new high.

The company’s single quarter revenue3.

3.6 billion, an annual increase of 8.

9%, net profit 61.88 million yuan, an annual increase of 15.

9%. This is the first time that the company has achieved positive single-quarter revenue growth since the second quarter of 2018, reversing the trend of three consecutive quarters.

At the same time, the net profit for the single quarter of 61.88 million yuan also hit a new high for the quarter.

Xinhu achieved double-increased quarterly revenue and profits, and the proportion of coal-to-gas conversion was further transformed.

Due to the restructuring of coal-to-gas demand, Dayuan’s subsidiary Hefei Xinhu has experienced negative growth every four consecutive quarters. In the third quarter, Xinhu finally achieved a double increase in revenue and profits, with single-quarter revenue1.

USD 7.6 billion, mainly due to the increase in demand for non-coal to gas small pumps and the development of industrial canned motor pumps. The first three quarters of Hefei Xinhu industrial canned motor pump revenues have exceeded 2018. Excluding refrigeration pumps, industrial canned motor pumpsRevenue grew 61% in ten years.

It is expected that the continuous growth of industrial canned pumps such as chemicals, and the development of overseas markets, Hefei Xinhu’s revenue will return to the growth track.

Gross profit margin increased steadily, and net profit margin hit a new high.

The company’s overall gross profit margin in the third quarter was 31.

3% is also a new high since the last four quarters, and the optimization of the product structure of industrial canned pumps has improved the overall gross profit margin.

The gross profit margin of the parent company Dayuan on civil pumps has also improved compared to the previous period.

Third quarter net profit 18.

4% is also the highest single-quarter profit margin since listing.

The efficiency of civil pumps has improved, and income has reached a new high.

In the third quarter, the parent company Dayuan’s civilian pumps segment1.

600 million, a single season high since listing.

Since 2019, the company has adjusted the civil pump sector, increased R & D investment and improved production efficiency.

The total market space for civilian pumps is over 40 billion U.S. dollars, and the current market share of Dayuan is less than 2%. It is expected that there will be room for growth in the future.

The company’s operating quality is good and its cash flow has increased significantly.

Net operating 武汉夜网论坛 cash flow of the company in the third quarter 2.

08 trillion US dollars, a year-on-year increase of 211%, the quality of receivables has further improved, and accounts receivable and bills have remained stable.

The company currently has 2 on its books.

6.8 billion currency funds and 3.6.7 billion wealth management products have no interest denial at all and have abundant capital.

Performance forecast and investment advice.

We predict that through the improvement of civilian pump business and breakthroughs in industrial canned pump customers, Dayuan Pump Industry’s fourth-quarter revenue and profit will continue to grow (due to a low 18-year base, it is expected that the growth will be higher), and Dayuan will also completely out of coalLow estimates due to declining gas demand, maintaining long-term revenue forecasts.

800 million, net profit forecast1.

82 ppm, corresponding to a 19-year PE assessment13.

2 times, the company’s cash flow and other financial indicators are healthy, ROE has been at a high level, and it is recommended to be cautious.

Risk reminder: The development progress of industrial canned motor pump customers exceeds expectations, and directors and senior executives reduce their holdings.